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Paper Topic:

Merck & Co., Inc Case Analysis

Frame Analysis of Merck

The events that Merck encountered in the early 1990s have brought the company under intense economic and political pressure . Managed Care Organizations (MCOs ) lowered the prices of drugs since they gained more control over drug prices and alone accounted for 75 of drug purchases Generic substitutes put more pressure on the pharmaceutical industry . In addition to the election of President Bill Clinton in 1992 , who exerted political pressure on the high profit margins of pharmaceutical companies and their alleged contribution to runway U .S . health care costs

p Merck CEO , Vagelos at that time , initiated a series of actions to adapt the company to the pressuring circumstances . The immense outside pressure created a sense of uncertainty and ambiguity which is best explained through the political frame . Vagelos actions demonstrated the power of the political frame which is demonstrated by his firmwide cost-cutting campaign . He also inclined to lay off his employees by his managed headcount and cut all waste strategies

Vagelos exerted a structural act by moving the corporate headquarters from its historic home in New Jersey to a 30 wooded campus near Whitehouse Station . The old headquarter was alongside the company research and manufacturing facilities , but the new site was merely corporate and isolated from the company 's other divisions . This move has weekend the sense of family and relationship through the human resource frame . Although , Vagelos claimed a human resource face to create a new corporate culture to prepare the company to meet external challenges , but his acts spoke of power and conflict through the political frame

The political frame created more confusion for Merck employees especially after Vagelos name Richard Markham as president of the company , who resigned after six months leaving the company in more confusion . The absence of the human resource and the symbolic frames has caused morale of company employees to decrease and there was a perception that Merck was losing its way as a company

Advantages and Disadvantages to Merck

Advantages for the political frame are the practice of power in face of uncertainty and confusion . However , the political frame created more confusion and the sense of team was lost . Advantages of the human resource frame builds on the sense of family and strong relationships to embrace the company for exerted pressure . The advantages of the symbolic frame are ability to handle complex and uncertain conditions of the company

Evaluation of Gilmartin Performance in Creating Change

Gilmartin has introduced so much change in Merck to enable the company to survive economic and political outside pressures . His performance would be evaluated in this section using the keys to a successful change introduced by Tucker in 1995 . The following objects need to be clearly identified : need , objectives , participation , broad guidelines , details by group , benefits of change , and giving rewards

At first the need to change is identified at Merck to be initiated by the increasing economic and political pressure that was imposed on the company during 1992-1993 . The change outside the company...

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